Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurance company worldwide. It operates through Open Market and ...
Greenlight Capital Re, Ltd. (NASDAQ: GLRE) is a specialist property and casualty reinsurer headquartered in Grand Cayman, Cayman Islands. Founded in 2004 and listed on NASDAQ since 2007, the company operates through two segments: Open Market and Innovations. Its products include casualty reinsurance (automobile liability, general liability), financial coverages (mortgage, ...Greenlight Capital Re, Ltd. (NASDAQ: GLRE) is a specialist property and casualty reinsurer headquartered in Grand Cayman, Cayman Islands. Founded in 2004 and listed on NASDAQ since 2007, the company operates through two segments: Open Market and Innovations. Its products include casualty reinsurance (automobile liability, general liability), financial coverages (mortgage, trade credit, surety, transactional liability), health (accident and critical illness), multiline policies, property (commercial property and catastrophe), and specialty lines such as agriculture, cyber, marine and energy, aviation, space, and war/political violence/terrorism. The company markets its products primarily through reinsurance brokers. With 84 employees, Greenlight Re is known for its innovative approach, particularly through Greenlight Re Innovations, which has made 20 investments in insurtech startups. Financially, the company has shown strong profitability with a net profit margin of 7.7% and a return on equity of 7.3%, though it trades at a low price-to-book ratio of 0.74. Key leadership includes CEO Greg Richardson, who was appointed in early 2024, and the company's strategic focus remains on disciplined underwriting and capital deployment.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$696.3M
+7.5%
+2.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$74.8M
+74.8%
-182.8%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+40.9%
+503.2%
-87.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+11.2%
+67.3%
-179.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+10.7%
+62.6%
-180.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$210.2M
+88.5%
-15.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+30.2%
+75.4%
-18.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
0.7%
-93.0%
+96.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.99x
-11.7%
+17.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Thank you for joining the Greenlight Capital Re Second Quarter 2026 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the call over to David Sigmon, Greenlight Re's General Counsel. You may begin.
David Sigmon: Thank you, Kevin, and good morning. I would like to remind you that this conference call is being recorded and will be available for replay following the conclusion of the event. An audio replay will also be available under the Investors section of the company's website at www.greenlightre.com. Joining us on the call today will be our Chief Executive Officer, Greg Richardson; Chairman of the Board, David Einhorn; and Chief Financial Officer, Faramarz Romer. On behalf of the company, I'd like to remind you that forward-looking statements may be made during this call and are intended to be covered by the safe harbor provisions of the federal securities laws. These forward-looking statements reflect the company's current expectations, estimates and predictions about future results and are subject to risks and uncertainties. As a result, actual results may differ materially from those expressed or implied. For more information on risks and other factors that may impact future performance, investors should review the periodic reports that are filed by the company with the SEC from time to time. Additionally, management may refer to certain non-GAAP financial measures. The reconciliations to these measures can be found in the company's filings with the SEC, including the company's Form 10-K for the year ended December 31, 2025. The company undertakes no obligation to publicly update or revise any forward-looking statements. With that, it is now my pleasure to turn the call over to Greg.
Greg Richardson: Thank you, David. Good morning, everyone, and thank you for joining us. Q2 2026 was challenging for Greenlight Re. We reported a net loss of $29.6 million for the quarter, driven by investment income losses from the Solasglas portfolio and a modest underwriting loss. It is worth noting that the second quarter investment loss has essentially reversed in July. Our underwriting result in the second quarter includes a $20 million provision linked to losses related to the Middle East conflict, plus a $6.5 million provision linked to an oil refinery explosion in Qatar, which was not war related. Our specialty book is a core part of our overall portfolio and has been profitable historically. The specialty book is susceptible to severity events such as the Middle East war. Reserving for this ongoing conflict has been challenging with limited available information. We have posted a reserve in relation to events up to June 30, 2026, which we believe is prudent, although there is a high degree of uncertainty. We are not aware of any major Q3 losses as we continue to closely monitor the situation. Furthermore, our exposure to potential loss from the war going forward is decreasing as our cedents are actively reducing …
